The fintech industry is growing exponentially, and its growth is predicted to continue. That means the digital disruption in many industries — retail and travel — will also come to real estate. And it’s happening faster than you think.
1. Blockchain: the technology for revolutionizing real estate
When it comes to innovation in the real estate industry, blockchain technology is the most promising. Blockchain is a digital ledger that records transactions and enables secure digital exchanges of assets. In addition, it’s decentralized, meaning no central authority controls it.
Blockchain has been used in many industries to facilitate transactions between parties while maintaining an immutable record of these transactions on a distributed network of computers (called nodes). In addition, it helps keep information secure and transparent, as there’s no single point where it can be altered or corrupted.
The use cases for blockchain are vast:
- you could use it to track property ownership and transfer titles
- create smart contracts
- manage financial derivatives
- issue stablecoins
- trade cryptocurrencies
- track ownership history across generations through time stamps on blocks…
2. Crowdfunding: why is it perfect?
Crowdfunding is a new way to raise money for your real estate project.
One can use crowdfunding platforms to raise funds, from buying a house to building a community center.
You can use crowdfunding to get your project off the ground, or if you already have plans in place but need capital, this is an excellent way of getting it!
Fintech makes a significant impact on the crowdfunding segment. There are many different approaches, including tokenized real estate, to explore.
3. Residential Real Estate Agents: go digital or decline in sales
Real estate agents are essential. They help facilitate the sale of residential property, from representing clients in negotiations to find a buyer or seller for a particular house.
Fintech startups can disrupt them. Fintech companies are entering the space, offering digital services that allow users to search for and buy homes online without needing an agent’s help.
These startups may provide better experiences than traditional real estate agencies because they use technology to create more efficient processes. Additionally, they make it easier for people looking for homes to find precisely what they want using their website or mobile app.
How can you stay ahead of the game?
By adopting new technologies before your competitors do! You’ll need access to data from multiple sources to see which cities are seeing rising demand for housing prices versus falling demand. That will help inform whether or not it makes sense for someone living there.
Also, develop relationships with other businesses. For example, by partnering with plumbers who work on houses built after 2010 (which means they probably have internet access at home).
4. Commercial Real Estate Investors: value investment over tangible asset investment
Investors have become more value-driven over the years. They want to invest in businesses that will grow and make them money, not just buy something tangible. So if a business grows, it’s likely because it has found a way for customers to see value in what they’re offering.
That’s why many startups focus on their brands and product. Investors are looking for the kind of company where they can relate to the mission of creating something meaningful for people—not just buying up assets based on their potential returns or scarcity.
This same mindset applies to commercial real estate investment opportunities: how much value can I get from my money? Rather than simply buying an office building with cash flow, investors are also interested in seeing how much growth potential exists within those properties. If there’s no other way to make money by investing my funds into this building, I won’t do it!
The fintech industry will continue to grow exponentially
The fintech industry is growing exponentially and could hugely impact real estate. The most obvious example is property management, where tech companies have made it easier for people to manage their properties remotely and make it much easier for owners to rent out their homes.
In addition, companies like Airbnb are changing how we see travel, allowing us to stay in someone’s home instead of staying in hotels or hostels. That has led to a drop in accommodation prices and has made it significantly cheaper for people traveling on a budget.
The other central area of disruption comes from blockchain technology. It allows users to trade real estate without having an intermediary third party involved (such as a bank). Some users even favor paying with cryptocurrencies.
Ninety percent of Americans believe there will be more than one cryptocurrency by 2025 and that cryptocurrencies will become mainstream within seven years. These transactions will likely become more commonplace over time, including in real estate.
Fintech is changing the way we live and work. It’s not just about digital banking but also how we interact with each other and make decisions.
With this in mind, it’s clear that fintech will continue to grow exponentially over the next few years and could hugely impact the real estate world.